NEW SCHWINN STING-RAY SALES SET BREAK-NECK PACE, NEW MODELS ON THE WAY

April 2004 - MADISON, Wis. - With just three weeks of sales under its belt, the new Schwinn Sting-Ray is clearly living up to its billing as the "rebirth of cool." Nearly every location carrying the new Sting-Ray has sold out of the bike as quickly as it appears on the floor - most within 12 hours.

"Initial customer demand has been unprecedented," said Byron Smith, Schwinn's Chief Operating Officer & President. "While some stores are just getting their initial orders on the floors now and others in the next two weeks, many stores have sold out almost instantaneously, with folks literally lining up to get their hands on one. We're working fast and furious to fulfill new orders and replenishment requests as quickly as possible. This is still quite early, but we are seeing increasing signs of something not seen since the original Sting-Ray topped bike sales 40 years ago ... it is unbelievable."

The new Sting-Ray, a modern chopper version of the classic banana seat bike of the '60s and '70s, has created quite a stir amongst 7- to 14-year-olds. It has also launched an entirely new category in the bike market, which has been traditionally comprised of BMX, mountain and traditional sidewalk bikes. Excitement for the new bike has swept the country.

"Public feedback has been vocal, consistent, and overwhelmingly positive," said Smith. "Case in point: We heard from a man in Sacramento who searched for the sold-out bike at three stores. The man met other customers on similar searches who ended up buying the bikes still in the boxes just to insure they got them before they went on display. We've heard from a man in Los Angeles who went to seven stores in search of a bike for his son and a woman in Arkansas who purchased the remaining 10 bikes in a single store because she thought she'd never see them again. Clearly Sting-Ray fans are a tenacious bunch."

Schwinn is also promoting the new Sting-Ray with national television ads that began running April 19 - something the company hasn't done since the early 1970s, when Captain Kangaroo was a leading spokesperson for the brand.

Smith notes that while most stores planning to carry the new Sting-Ray should have them in stock by May 1, the bike is available in limited quantities and customers looking for the bike may have to act quickly. The new limited edition Sting-Ray will continue to arrive in Wal-Mart, Toys "R" Us, independent Schwinn bike shops, Dick's Sporting Goods, Fred Meyer and other retail locations throughout the spring and summer with a retail price of under $180.

Demand for the 20" Sting-Ray (the model currently available in stores) has spurred Schwinn to complete development of additional iterations for the new Sting-Ray line. Plans for limited edition models such as a smaller 16" bike, a larger 26" bike, a 20" girls' bike, and even a trike for the youngest cruiser are already underway. A full array of official Schwinn Sting-Ray parts and accessories including helmets, saddlebags, gloves and more will be available as early as June. Schwinn will also reissue two highly anticipated models of the original, classic Sting-Rays: the Coppertone-colored Sting-Ray and the highly-collectible Grey Ghost. The classics will be available beginning late June.

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